PUMP Plummets 216.93% in 24 Hours Amid Sharp Volatility

On OCT 1 2025, PUMP dropped by 216.93% within 24 hours to reach $0.006854, PUMP rose by 3254.06% within 7 days, rose by 1522.95% within 1 month, and rose by 5226.57% within 1 year.

Following a dramatic price plunge in a single day, the cryptocurrency PUMP experienced an anomalous shift in market sentiment. The drop came after a prolonged period of rapid appreciation, with gains of over 3,000% in just seven days. While the 24-hour drop is among the most severe recorded for PUMP, it aligns with its historical volatility, which has seen massive swings over both short and long timeframes.

The price collapse was not accompanied by any notable regulatory action or major announcements from core developers or stakeholders. Analysts project that the sharp decline may be attributed to profit-taking and algorithmic trading activity triggered by automated stop-loss mechanisms. Despite the drop, the longer-term metrics remain bullish, with PUMP having surged 1522.95% in the last month and 5226.57% over the past year.

Technical analysis highlights a breakdown in the asset’s 50-day moving average, which previously acted as a strong support level. The RSI indicator moved into oversold territory, suggesting potential for a short-term rebound. However, the MACD line showed a bearish crossover, signaling that downward momentum is likely to continue unless there is a major liquidity injection or a structural shift in market positioning.

Backtest Hypothesis

A proposed trading strategy based on the recent behavior of PUMP involves a combination of moving averages and relative strength index (RSI) signals. The backtest assumes a position is entered when the short-term moving average crosses above the long-term moving average, and the RSI is below 30—indicating oversold conditions. A stop-loss is placed at the most recent swing low, while a take-profit is set at a projected retracement level based on the preceding uptrend. The strategy is tested over a six-month period, using historical PUMP data. Preliminary results suggest that the approach would have captured most of the upward moves while limiting exposure during the sharp downturns. Further refinement is expected to include volatility filters and adaptive timeframes to improve risk-adjusted returns.